Executive Summary SAN ANTONIO RIVERWALK

Home , Hotel Indigo, San Antonio College

PRESENTED BY THE PLASENCIA GROUP is pleased to present for your investment consideration the Hotel Indigo situated on San Antonio’s famous Riverwalk. The 149-room Hotel Indigo is located across the San Antonio River from the Tobin Center for the Performing Arts and adjacent to the pending 167-room Thompson Hotel. While InterContinental Hotels Group is fully prepared to relicense the hotel as a Hotel Indigo, various Marriott and Hilton brands are worthy of consideration, as is an independent operating model based on the hotel’s Riverwalk location. With the combination of San Antonio’s 300th anniversary celebration in 2018 and an active convention calendar through 2021, this investment opportunity presents substantial upside potential.

EXECUTIVESUMMARY Investment Highlights

2 LOCATION – SAN ANTONIO’S FAMOUS RIVERWALK The Hotel Indigo is located along San Antonio’s famous Riverwalk, one of Texas’ most popular tourist destinations. The entire Riverwalk complex, which includes restaurants, retail outlets, museums and the Tobin Center for the Performing Arts, offers a walkability dynamic which continues to enhance its popularity among the leisure segment, private and government associations, corporate groups and international tourists. The Hotel Indigo is less than a 15 minute walk from the state’s number one single tourist attraction, The Alamo. 12

AREA ATTRACTIONS 4 Hotel Indigo – San Antonio Riverwalk 1 Hotel Emma

2 Pearl Brewery District 3 3 Trinity University 4 San Antonio Zoo 5 Breckenridge Park 6 UTSA Downtown Campus 7 Alamo 8 Hemisfair Park 5 9 Riverwalk 10 RiverCenter Mall 11 Henry B. Gonzalez Convention Center 12 University of Incarnate Word 13 San Antonio College 14 Children’s Hospital 15 Alamodome 13

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15 EXECUTIVESUMMARY

SAN ANTONIO SNAPSHOT • San Antonio is the nation’s seventh largest city with a population of over 1.4 million. • San Antonio is one of Texas’ four major hospitality markets, the others being Houston, Dallas and Austin. • The economic base of San Antonio is supported by tourism, military bases, medical centers, numerous colleges and universities and an active energy sector. • The core of San Antonio’s tourism is built around the famous Riverwalk, which is populated with dozens of hotels, restaurants and tourist attractions, including the state’s number one tourist attraction, The Alamo. • The Henry B. Gonzalez Convention Center, one of the nation’s premier facilities, recently underwent a $400 million renovation and upgrade to maintain its very competitive position. • During the first quarter of 2017, the San Antonio International Airport set a new record with over 2,000,000 people passing through the facility. • In 2018, the city will observe its tricentennial. During this year-long celebration, San Antonio will be hosting many special events and activities that will highlight the city’s distinctive attractions and should draw scores of visitors. EXECUTIVE SUMMARY EXECUTIVE

SAN ANTONIO’S HOSPITALITY SECTOR • According to Smith Travel Research, San Antonio’s hospitality sector offers over 400 hotels with a room supply of approximately 46,000. • During the first three months of 2017, San Antonio hotels advanced RevPAR by 9.5% over the first quarter of 2016. • During the twelve-month period ending as of March 2017, San Antonio’s hotel sector registered a RevPAR improvement of approximately 5%. • Major attractions in San Antonio include The Alamo, The Riverwalk, Fiesta Texas, SeaWorld and The Missions. EXECUTIVESUMMARY

HOTEL INDIGO – SAN ANTONIO RIVERWALK The Hotel Indigo was developed and opened as a Hawthorn Suites in 1998. Real estate records indicate the hotel was owned by various entities until converting to a Hotel Indigo in 2009. The last renovation of the hotel occurred in 2009 and the hotel’s current physical condition reflects this timeline. During the twelve-month period ending March 2017, the Indigo recorded room revenue of approximately $4,600,000 and total revenue in excess of $5,500,000.

The Hotel Indigo, given its Riverwalk location, competes with hotels throughout the downtown San Antonio area. Current management has designated a competitive set that includes a SpringHill Suites, Hyatt Place, DoubleTree, Fairfield and another Hotel Indigo located in the downtown area. Even in its dated condition, this hotel registered a RevPAR Index of approximately 88% during the March 2017 T-12 period.

HOTEL INDIGO – SAN ANTONIO RIVERWALK Investment Summary

Address 830 North St. Mary’s Street, San Antonio, Texas 78205 Year Opened/Renovated 1998/2009 Guestrooms 149, inclusive of five suites Parcel Size 1.61 acres Building Height Three stories Brand Affiliation InterContinental Hotels Group Management Offered unencumbered; currently operated by GF Management Food & Beverage Bridges Bar & Bistro Total Meeting Space 2,200 Square Feet Parking 80 Leased Spaces ($16 per night) Property Amenities Business Center, Health & Fitness Center, Pet Friendly, Self-Parking, Complimentary Internet Access Additional Considerations Fee Simple; Non-Union EXECUTIVE SUMMARY EXECUTIVE

RENOVATION / POSSIBLE RE-BRAND OPPORTUNITY The Hotel Indigo has not been renovated since 2009. Based on the hotel’s positive guest scores and Riverwalk location, InterContinental Hotels Group has issued a Change of Ownership Product Improvement Plan to relicense this lodging establishment as a Hotel Indigo. While the hotel has a strong operating track record as part of the Hotel Indigo brand, various Hilton and Marriott brands are worthy of discussion and evaluation. Additionally, the Riverwalk location allows for a full evaluation of the hotel as an independent lodging establishment.

SALE TERMS The Hotel Indigo – San Antonio Riverwalk is being offered to the investment community free and clear of its existing management agreement as well as its current franchise agreement with InterContinental Hotels Group. Current ownership will only evaluate all-cash indications of interest as no seller financing will be offered and no in-place debt facility is available for assumption. CONTACT INFORMATION For additional information regarding the Hotel Indigo – San Antonio Riverwalk investment opportunity, please contact:

ROBERT WIEMER JOE CORCORAN PAUL WILLIAMS (281) 379-2613 (214) 289-8128 (972) 492-0250 [email protected] [email protected] [email protected]